WHERE TO SLEEP

The best accommodation value in Gracias is Hotel Guancascos (www.guancascos.com), located on San Cristobal Calle just below the Castillo San Cristobal fort. The 17 rooms are spotless and well appointed, the staff is charming, free Wi-Fi works in the common area and select rooms, and the restaurant is great. Even if you're not staying there, owner Fronicas "Frony" Miedema, a 23-year resident of Honduras, will be happy to give you information about the area and arrange tours and transportation. At press time the hotel was in the final stages of gaining green certification, making it one of only a few eco-certified hotels in Honduras.

Posada de Don Juan Hotel (www.posadadedonjuanhotel.com) is the closest thing to a resort in Gracias.

At Hotel Real Camino Lenca (www.hotelrealcaminolenca.com), the new rooftop bar called El Gran Congolon has a black-and-white theme, molded modern plastic chairs and big cube seats, making it the closest thing to a Miami Beach hotel bar that I've seen in Central America.

In La Campa, head for Hostal JB. Located two blocks from the church, the JB has five charming, rustic rooms with private bathrooms in a former home. Guests have use of the living room, kitchen and dining room. There's a a lovely garden, too.

If you arrive in Honduras through the San Pedro Sula International Airport and can't transfer immediately to Gracias, book a room at Banana Inn (www.bananainn.com), a spotlessly clean and serene 16-room hotel on grounds that were established by the Chiquita Banana company in 1930. Charming owners, air conditioning, a pool, free full breakfast (try baleadas, a Honduran favorite), Wi-Fi and a location just five minutes from the airport make this a winner.

If you plan to attend Cacique Lempira Day in Gracias, reserve accommodations in advance. The town fills up fast.

WHERE TO EAT

Do not miss the chance to eat at Rinconcito Graciano on San Sebastian Avenida, four blocks west of the central park in Gracias. Owner, chef, guide and organic food pioneer Lizeth Perdomo cooks meals using Lencan recipes passed down from her grandmother. I enjoyed beef in a stroganoff-like gravy and a salad made with local large-leaf oregano and a watercress-like green straight from Lizeth's garden. Meals are served on traditional Lencan pottery. If the restaurant is closed, ask for Lizeth at the shop across the street and she'll come open for you. Lizeth also bakes a mean loaf of grainy whole-wheat bread, something about as rare as the gold they used to mine from the hills here.

El Jarron, directly across from the central park, serves tasty platos tipicos (grilled or fried meat or fish with rice, tortillas, salad and a side-of-the-day) in a breezy dining room full of tables and chairs crafted from whole logs and cross sections of trees. The beef-filled rolled and fried tacos are a delicious bargain.

Tipicos La Frontera, across the street from El Jarron, is the place for homemade bean and pork soup, which is only available when they post a handwritten sign on the door. It's so rich and delicious you won't mind the nonstop children's programs on the TV.

Kafe Kandil bar, on Jose Maria Medina Avenida, four blocks north of the central park, will surprise you with its low light, throw pillows, cool music, original art and breezy back garden. It's a great place for a cold beer, cocktail or snack.

Lorendiana, on Principal Dr. Juan Lindo Avenida three blocks west of the central park, sells delicious, homemade all-natural popsicles (called paletas) in a wide range of flavors including passionfruit, pineapple, strawberry and green mango. Owner Diana Lorena's home-canned vegetables, fruits and sauces also tempt.

MONEY MATTERS

Rumors persist that an ATM will be installed in Gracias "soon." In the meantime, you can get a cash advance from the Supermercado el Centro on Jeremias Cisneros Calle, half a block west of the square, for a fee of 8 percent. The Banco Atlantida in town will also process a cash advance from your credit card, incurring whatever fees your card terms apply. Some local businesses accept credit cards (including Hotel Guancascos and Kafe Kandil), but not many. It's best to arrive with cash on hand.

KAREN CATCHPOLE